The guys at Senior Living Investment Brokerage have been on a roll lately, announcing nine transactions in the month of May and another four in the first week of June. And there are more to come this month.
The latest was the sale of The Waterford in Smyrna, a 92-unit assisted living/memory care community in Smyrna, Tennessee. Dave Balow and Patrick Burke sold the community on behalf of a local ownership group/operator that decided to exit the asset to deploy capital into other real estate ventures.
Built in 2009 about 25 miles southeast of Nashville, the community was 57% occupied around the time of marketing. It generated nearly $2.48 million of revenues but lost $57,000 in EBITDAR as of May 2022. The buyer, a local owner/operator, has a strong presence in the Nashville MSA and will be able to bring a number of operating efficiencies to the community. Plus, with additional acreage available on the campus, the buyer could expand, too.
SLIB had sold an out-of-state skilled nursing facility on behalf of the buyer on May 1, 2023, allowing them to use funds from the sale to 1031 into the Smyrna acquisition. They paid $10 million, or $108,700 per unit, and there were no price adjustments throughout the transaction process.
